Pubic Citizen, et al. v. FEC
Case Summary

On January 31, 2014, Public Citizen, et al. (“Public Citizen”) filed
suit against the FEC in the U.S. District Court for the District of Columbia,
challenging the Commission’s dismissal of the plaintiffs’ administrative
complaint against Crossroads Global Political Strategies (“Crossroads GPS”).

BackgroundThe suit arises from an administrative
complaint Public Citizen and others filed with the FEC on October 14, 2010, that
alleged Crossroads GPS violated the Federal Election Campaign Act (the “Act”) by
not registering and reporting as a political committee.

Under the Act, a group generally must register as a political committee if it
raises or spends more than $1,000 during a calendar year to influence federal
elections. 2 U.S.C. 431(4). In Buckley v. Valeo, the Supreme Court said
the definition of political committee “need only encompass organizations that
are under the control of a candidate or the major purpose of which is the
nomination or election of a candidate.” Public Citizen alleges that in 2010,
Crossroads GPS exceeded FECA’s $1,000 expenditure threshold and that its major
purpose was to influence federal elections.

The Commission lacked the required votes to open an investigation and the
matter was dismissed.

ComplaintPublic Citizen’s lawsuit challenges that
dismissal. The complaint alleges that Crossroads GPS spent more than $1,000 to
influence federal elections and that its total spending on political
advertising, relative to its total receipts, suggests its major purpose was to
influence federal elections. The complaint further alleges that Crossroads GPS
violated the Act’s registration requirements and failed to disclose the funding
sources for Crossroads GPS’ political advertisements.

Public Citizen seeks a declaration that the Commission’s dismissal of its
administrative complaint was arbitrary, capricious, an abuse of discretion, and
otherwise contrary to the law. Public Citizen further seeks an order requiring
the FEC to conform with such a declaration within 30 days.